EUR/GBP: Hard to rally - SocGen

As EUR/USD drifts lower, it's hard for EUR/GBP to rally, even if UK data and news are pretty poor, according to Kit Juckes, Research Analyst at Societe Generale.

Key Quotes

“Still, as the divisions within the Conservative party shine out, and as Jeremy Corbyn's policies are given an airing by more frequent public comments, the only things to love about the pound are its cheapness and the lack of economic Armageddon. On we go to labour market data that probably leave wage growth unchanged, despite unemployment falling from 4.3% to 4.2%. This is the last month that MPs will be under time pressure to understand the labour market data before PMQs, but I suspect they have bigger Brexit fish to fry (and quiz PM May about). GBP/USD is in no man's land but 1.38 is reachable.”